Winemakers Dominate GD Donations, Get Credits, Subsidies – Watchdog

More than half of Georgian Dream’s donors have ties to alcohol-producing companies, many of which have received government subsidies, loans, or contracts. This is according to the newsletter published by Transparency International – Georgia, a watchdog. The newsletter provides a quarterly overview of the donations made by political parties from July 1 to September 30, 2023.

According to TI-Georgia, altogether the parties received a total of GEL 1,901,299 during the reporting period, four times more than in the previous quarter (GEL 453,336).

Georgian Dream got 65% of these donations – GEL 1,238,000, up from GEL 778,000 the previous quarter. The United National Movement (UNM), the largest opposition party, came in second with GEL 274,677. Lelo for Georgia was third with GEL 186,020, and Generations for Georgia was fourth, with GEL 180,000.

UNM narrowly leads in the number of donors with 55 donations during the reporting period; Georgian Dream received 51, although many more were large donations.

Georgian Dream Donors

Georgian Dream’s “winemaker” donors contributed GEL 940,000 to the party in August and September, over GEL 2 million since 2012. These companies also secured contracts worth over GEL 4 million, received GEL 14 million in agricultural credits from 2013 to 2021, and GEL 17 million in subsidies in 2021-2022.

Donations coincided with the period leading up to the 2023 grape harvest, for which the state budget allocated more than GEL 60 million in subsidies. Fifteen of the donor companies – half of the total number of winemakers – get grape harvest subsidies.

TI-Georgia notes that three of these companies, Askaneli Brothers, Tsinandali Old Cellar, and Georgian Wine House, were major wine exporters to Russia in 2022. The watchdog recommends the Georgian government stop subsidizing companies that increase economic dependence on Russia.

During the reporting period, certain companies did not secure public procurement contracts, but they had previously, since 2013, obtained 1,700 simplified procurement contracts worth more than GEL 4. Some alcohol-producing companies connected to these donors received preferential agricultural credits totaling up to GEL 12 million from 2013 to 2021 and subsidies exceeding GEL 17 million in 2021-2022.

TI-Georgia says during the reporting period, some suspicious transactions were made. The watchdog is of the opinion that some individual donors may be acting as conduits for funds from their employers’ wineries.

Also Read:

• 17/08/2023 – TI Georgia: Almost Half of Political Donations Went to Lelo for Georgia
• 15/05/2023 – TI Georgia: Almost Half of Political Donations Went to Georgian Dream
• 28/02/2023 – TI Georgia: 50% of Political Donations Went to Georgian Dream